Back to The Commissioner's page
Personal Property Tax Relief 2006 and Beyond
During the 2005 session of the Virginia General Assembly our representatives in Richmond passed legislation that was signed into law that allows Caroline County to reduce the personal property taxes paid by individuals on personal vehicles. The law that was passed is much different than the law passed in 1998. The new law will apply to the Caroline County 2006 and beyond personal property bills.
The tax relief does not eliminate the personal property tax. It does, however, provide for a partial reduction in your personal property tax. The reduction percentage is a function of the county growth and value of the vehicle tax base and will be determined annually. The reduction will be applied to the first $20,000 of value on qualifying vehicles. Any value in excess of $20,000 is not subject to the reduction.
As a result of this new program the state relief will shrink over time since Caroline County continues to grow and add vehicles eligible for the relief.
Taxpayers whose bills remain delinquent for prior years after funds are depleted or September 1, 2006 whichever comes first may be billed at the full amount of their original levy without regard to the "old" 70% relief that was paid to the County by the Commonwealth.
The Caroline County Board of Supervisors and The Commissioner of the Revenue shall apply this law to all qualifying vehicles in accordance with state law. The Commonwealth car tax relief for 2006 on qualifying vehicles in Caroline County will be 55% for the taxable year of 2006.
MOTOR HOMES, TRAILERS AND FARM USE VEHICLES DO NOT QUALIFY
Does your vehicle qualify for Car Tax Relief?
If you can answer YES to any of the following questions, your motor vehicle is considered by State Law to have a business use and does NOT qualify for the Car Tax Relief.
- Is more than 50% of the mileage for the year used as a business expense for Federal Income Tax purposes OR reimbursed by an employer?
- Is more than 50% of the depreciation associated with the vehicle deducted as a business expense for Federal Income Tax purposes?
- Is the cost of the vehicle expensed pursuant to Section 179 of the Internal Revenue Service Code?
- Is the vehicle leased by an individual and the leasing company pays the tax without reimbursement from the individual?